Incannex Healthcare stock tumbles after filing $100M offering
On Thursday, H.C. Wainwright analyst Yi Chen increased the price target on BioLife Solutions (NASDAQ:BLFS) to $30.00, up from the previous target of $27.00, while maintaining a "Buy" rating on the stock. The company’s shares have shown significant momentum, gaining over 11% in the past week and nearly 50% over the last year, according to InvestingPro data. The adjustment follows BioLife Solutions’ announcement of its financial results for the fourth quarter and the full year of 2024 earlier this week, which revealed a total revenue of $22.7 million for the fourth quarter, surpassing the analyst’s estimate of $21.3 million.
The company reported a net loss of $2.0 million, or ($0.04) per share, which was smaller than the projected loss of $4.4 million. For the entire year of 2024, BioLife Solutions posted total revenue of $82.3 million, excluding $37.7 million from discontinued operations, and a net loss of $11.4 million, or ($0.25) per share. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 4.54 and operates with moderate debt levels. Get access to 8 more exclusive ProTips and comprehensive financial metrics with InvestingPro.
BioLife’s Cell Processing segment experienced a 7% sequential increase in revenue to $20.3 million for the fourth quarter and a 12% year-over-year growth to $73.5 million for 2024. The segment has now seen revenue growth for five consecutive quarters. The company also reported processing 19 new FDA Master File cross references for its biopreservation media in the fourth quarter, totaling 69 for the year. As of December 31, 2024, BioLife’s biopreservation media was incorporated into 17 approved cell and gene therapies, with the potential for eight more approvals, geographic expansions, or new indications in the next 12 months.
BioLife has also completed the sale of a non-core product line to focus on improving gross margin and adjusted EBITDA margin from continuing operations. Looking ahead to 2025, management anticipates Cell Processing revenue to range between $86.5 million and $89.0 million, indicating an 18-21% year-over-year growth, and total revenue to be between $95.5 million and $99.0 million, reflecting a 16-20% year-over-year increase. The company expects the gross margin to be in the low 60% range.
Chen stated that due to BioLife’s strong performance in the fourth quarter of 2024, which exceeded the full-year guidance, the valuation multiple has been increased to 13.3x from 12.1x. The raised revenue projections for the next 12 months led to the new price target of $30, reaffirming the "Buy" rating and elevating the 12-month price target from $27. According to InvestingPro analysis, the stock appears overvalued at current levels, with analyst targets ranging from $30 to $34. The company maintains a healthy gross profit margin of 65.25% and shows strong revenue growth potential, with analysts forecasting 17% growth in FY2025.
In other recent news, BioLife Solutions reported strong fourth-quarter results that exceeded expectations, with revenues reaching $22.7 million, surpassing the consensus forecast of $22.03 million. The company’s cell processing segment, a key driver of growth, saw a 37% year-over-year increase in revenue to $20.3 million. Despite a fourth-quarter loss of $0.04 per share, this was narrower than analyst estimates of a $0.08 per share loss. Benchmark maintained a Buy rating on BioLife Solutions with a $30 price target, citing the company’s robust earnings forecasts and growth potential.
BioLife Solutions has also provided optimistic guidance for 2025, expecting revenue growth between 16% and 20%, which would result in revenues of $95.5 million to $99 million. The company forecasts its cell processing revenue to grow 18-21%, reaching $86.5-$89 million. The biopreservation media products are now embedded in 17 approved cell and gene therapies, with eight additional approvals or expansions anticipated in the next 12 months. These developments reflect BioLife Solutions’ strategic focus on its high-margin core business following recent divestitures.
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